Forex is a profitable market with abundant trading opportunities and developed cognition and awareness are preconditions for anybody to engage in this market. Because of the high profit and cash fluidity of Forex, many people are eager to register for it. Honestly, Forex has no official site and www.Forex.com is not for registration. So, people for registration in Forex must refer to brokers as the intermediary between suppliers and customers and enroll on their websites. Before taking any action, you must select an appropriate broker and an account suitable for your condition, asset, and target then try to enter the Forex market. In the current article, we intend to get you acquainted with an opening account in Forex brokers, registration conditions, required documents, and authentication, but initially, we introduce you to how to choose a broker.
Forex Brokers:
Since some imposed sanctions on Iran, Iranian are not allowed to use all brokers. However, some brokers offer services for Iranian inside the country and open an account on their websites and trading is available. Brokers are acting as an intermediary between suppliers and customers. So, at the beginning is essential to select a proper broker. In determining a broker at the first step you should have a complete awareness of your asset, your targets, strategies, and your character then select an appropriate broker for yourself. Our suggestion for a better understanding of brokers rendering services for Iranian inside the country is to select some of them. Then go to their website and be active use both demo and virtual accounts. Using your virtual account, you practically will be familiar with the broker’s condition and easily have the possibility of comparing, contrasting, and in the end conforming the broker to your conditions. Terminating the trade in your demo account, you can choose your proper broker.
A point in selecting a brokerage that must take into consideration is its letter of credence and without the validity of it, do not trade in that platform. Due to the fact that for enrolling each broker you should determine your transactional account and then start to trade, in the following part we will introduce you to how to determine a transactional account.
Determining Account Type:
One of the reasons for opening accounts in brokerages is the efficiency of that account for all people. In fact, brokers create numerous accounts in order to prepare for all individuals with any amount of asset, target, and strategy to trade in the Forex platform. For this reason, in each brokerage, there are different transactional accounts and a large number of people around the world have access to opening accounts in accordance with their own conditions.
In the following, we will talk about the different types of accounts in Forex that mostly are different in the basic assets, the amount of leverage, the type of spread, commission, and accessible currency pairs for trading. Pay attention to the point that different brokers may choose different names for the accounts. It means 2 separate brokers, who there the same accounts but their names might be different. Different types of Forex accounts are generally as followed:
Demo or Virtual Account:
Virtual accounts are one of the prominent accounts that exist in all brokerages. In the initial steps, these accounts are considered as a contributory element to trading newcomers. By using demo accounts, people proceed to trade with a virtual asset that reaches up to 10,000 $ in some brokerages. Pay attention that all achievements in virtual accounts are on the basis of price movement and the trader’s strategy, but the difference is that all the assets, profit, and loss are unreal. Accordingly, beginner traders by using the Forex demo accounts are learning the possibility of changing the strategy or its improvement, asset, and risk management, and different transactional options.
Cent Account:
A cent account is an account with a low amount of assets and is suitable for beginners. A cent account balance is shown on the basis of cent currency. The profit and loss are also according to cent, so it is literally efficient for beginners after using the demo account. This account helps new traders trade with small-value assets and consequently, they will lose less.
Standard Account:
Standard account utilizes a variable spread that has the highest leverage prepared for the individual in this account. A standard account is a zero-commission trading that is proper for professionals. In addition, the basic amount of assets for entering the standard account for each brokerage is different and high. The loss in standard account trading would be destructive.
Fixed Spread Account:
Fixed spread account is absolutely standard alike even in the method with the difference that the total transaction in the trading market, the spread is fixed.
ECN Account:
ECN is one of the current accounts in most brokerages. In ECN accounts the spread is lower than the mini accounts but the transactions are on commission. In this account, the price is clearly rendered for the traders.
Mini and Micro:
This account is like a standard account with the difference that in mini and micro accounts the deposit into the account is lower than standard. And mostly for opening this account 1 to 10 $ is needed.
Islamic Account:
Some brokers have opened Islamic accounts for Muslim people around the world. Islamic trading account is swap-free. Before opening an Islamic account, some brokers had the possibility to eliminate the swap.
PAM Account:
Some people do have not enough time to invest in Forex trading nor the possibility of daily tracing of NEWS and price movements. So, for this reason, they use a PAM trading account in a short period of time with no need of analyzing the market and price movements to get profit. In fact, in this account, the investor offers his own asset to the professional trader, and after trading automatically the specific amount of profit is deposited into the trader’s account. It should be mentioned that in the case of loss, the investor himself suffers the loss.
In this part, we have introduced you to different existing Forex accounts and now you can vigilantly open an account. Any of these accounts may have different names in other brokerages. However, their efficiency is the same and in accordance with your asset and your target, you can easily open an account with any broker. In the next part, we will see opening an account in the Forex brokerage.
Opening Account in Forex Brokers:
In the previous session, you got familiar with different types of accounts in Forex and now is your turn to register with the selected Forex brokers. When you visit your favorite broker site, you will probably see the option to register or open an account. At this level, just click on the registration option. Then a form will be shown to fill out with requested information like name, surname, and so on. In every broker, the requested information can be changed but they are merely asking for the following information to be completed, then the registration will be confirmed.
- First name & Last name
- Date of birth
- ID card Number (National Card, Birth Certificate, or Passport)
- Your Personal Email Address
- The Birth Country
- The Exact Address of your Residence
In the registration part, some questions will be asked related to the individuals’ amount and source of income, and also the extent of your information regarding Forex. At the end of all these stages, like other registration sites provisions and requirements of the broker will be announced, and an agreement for cooperation and your approval is rendered after you carefully read it. After confirming the agreement the registration is done. After completing the registration process, you will be sent an activation email to be confirmed, and only with one click on the sent link by the broker, your account will be activated. At this level, you have the ability to use your environment but for more access to trade and transactions must have waited till the authentication.
Authentication:
Before charging or deposing anything you must wait for your authentication. At this level, most brokers ask for your ID card number or passport and the approved document of your current residence. There is a special place on the brokers’ site for uploading the demand documents. Most brokers which work with Iranian traders in the authentication session, accept the documents in Farsi. For some other brokers, there is no need to send such information as your residence or ID card number. After uploading your personal identity documents, based on each broker’s operation policy, authentication will take a few days, and after that transferring the deposit to the account or initiating trades. The most prominent condition for authentication both for Iranian and foreigners is their age they must be above 18.
Conclusion:
In previous content, we have introduced to you how to open a trading account. The first step before opening an account is to know and get familiar with each broker and different types of transactional trading. Since some cheater brokers have no letter of credit before opening an account and trading the validity of their letter of credit must be scrutinized. The reason for the possibility of creating a different account in Forex is due to the inclusion of all people to invest different amounts of assets, targets, and strategies. Opening multiple trading accounts will prevent individuals from destructive loss. In brokers, some accounts like cent belong to beginners and newcomers in trading with low access and some accounts like standard are appropriate for people and mega organizations to invest. After selecting the broker and the proper account is time to register on the selected broker’s site and wait for authentication. Most brokers requested information such as your residence or ID card number is important. Then you must have waited till your personal identity documents be approved. After the authentication process, you are allowed to trade.
Frequent Questions:
- Which trading account is suitable for beginners?
The demo is the best account for those who have the desire to trade in Forex. Using the demo accounts, you will be learned the possibility of changing the strategy or its improvement, asset, and risk management, and different transactional options. In fact, a demo is for learning and achieving experience in the transactional market for beginners. After acquiring the proper skills and getting familiar with both the market and your own emotions and strategies, our suggestion is trading with low-risk like Cent Account.
- What are the required documents for registration in Forex broker?
Most brokers ask for information such as your residence and ID card number.
- Is it possible to register brokers from Iran?
Yes, despite the imposed sanctions and severe filtering it is still possible to register brokers from Iran.